Lloyd's of London

Today, we went to one of the oldest and most prestigious insurance agencies in the world, the Lloyd's of London. We left campus in our business attire around 10:00AM for our 11:30 appointment. The building was absolutely magnificent looking. Its architecture was different from anything that I have seen before (see picture below).



Once we were inside, we went through a security check and were issued i.d. badges. They charged the group £100, but Dr. Michello took care of it so that each student only had to pay £1 each! Once we were in, we were guided through the business floor to a conference room. In the conference room, our guide informed us of the history of Lloyd's and what they do.



Lloyd's began in a coffee shop where underwriters worked with merchant vessels to insure their ships during voyages. The owner of the coffee shop, Edward Lloyd, did not actually participate in any of the business deals, however, he did provide the environment for a market to take place. Similar to the way it took place in 1688, Lloyd's currently serves as a market place where underwriters and agents can do business.


Currently, the most riskiest part of their business entails "terrorism insurance." Some of their most eccentric things that are insured are body parts (i.e. nose for wine taster, hands for a surgeon, etc). One falsity that was corrected while we were there was that Jennifer Lopez's rear-end was NOT insured by Lloyd's.



Lloyd's of London Building



The floor where underwriting teams and agents meet


The broker sits on a stool at the end of the table and speaks to the underwriter (corner of the table) and his team (two individuals to his right).


1st floor looking up

Monday, July 28: 5th day of class

Today we reviewed Chapter 6 in our text books. The greater portion of our time discussing Baisle I's Tier I & II ratings and Baisle II's three pillars. We discussed how Baisle I inadequitely measured for the risk specifically pertaining to residential home loans. Baisle I had prime and sub-prime loans equally weighted when pertaining to risk, while Baisle II accounts for the risk better by showing that sub-prime loans are more risky. We briefly discussed what is being proposed for Baisle III, since Baisle II is already outdated.

Tomorrow, we are going to the Lloyd's of London. We are gettin dressed in our suits and doing it big in London!

Sunday, July 27: Brighton Beach

Today, Jessica, Britne, Cody and I decided to go to the beach! We took the Brit-rail to Brighton. Everybody was saying that it was the most beautiful day that they have had here this year. Their beach was covered in rocks instead of sand like the ones we were used to in Florida, the water was freezing, and people were everywhere!! However, we had a great time. We stayed there from 12:00 - 8:00, without sunscreen, so I look like a lobster!

On the way back, we saw these girls stomping and clapping to the "We will, we will ROCK YOU" song on the tube (subway). Everybody was looking at them like they were crazy, so our group decided to join them and sing with them. Ha. We had the whole car doing it. It was really funny! Needless to say, when people asked where we were from, they were not surprised when we said America.

Good Times!

Pier next to us with a carnival at the end

OCEAN!!

Stonehenge and Salisbury

Today, I got to see one of the oldest and mysterious places in the entire world, Stonehenge. It was more amazing than I had imagined. Some of the rocks came from great distances, and can weigh up to 16 or 17 tons! There are various assumptions about what it was there for. Some people say a calendar, some say royal burial ground, some say it is ritualistic, and others say ALIENS. Speaking of aliens, the crops where some "crop circles" were found in were right next to stonehenge. Weird, ay?

After Stonehenge, we visited a little town called Salisbury and saw Salisbury Cathedral. It was a beautiful place and a great little town. Today was a great experience that I will always remember.

Rockin it out...

Stonehenge

Salisbury Cathedral

Thursday, July 24: Bank of England

Today we visited the Bank of England. We left the campus around 8:30 and arrived at the bank at about 9:45. We had to go through security before we could get inside the bank. There were no pictures allowed after the security check point, so I don't have anything from the inside. We were given a brief description of what the bank's responsibilities are and how they changed in 1997. After the presentation, we watched a "drama documentary" about what would happen if their was not an entity that controlled interest rates to maintain inflation.

Afterwards, we were allowed to ask questions. A good question was asked with regards to why Great Britain has not gotten on board with the euro. He informed us that the euro would not benefit GB because their needs are not the same as other countries. It makes since that their economy is vastly different from the others using that currency, but I think it's mainly because GB does not want to be told what to do by someone else.

Following the question/answer session, I GOT TO PICK UP A BLOCK OF GOLD!! There were four cameras and a lady watching me, so I didn't try to take it with me. Visiting the bank was a very educating experience.

Bank of England

Big timing...

Wednesday, July 23: 4th Day of Class

Today, we began discussions of various ways to determine whether or not a market is efficient by reviewing Interest Rate Parity, Purchasing Power Parity, and the Fisher Effect. We learned how to take advantage of an inefficient market by using covered interest arbitrage and uncovered interest arbitrage. While reviewing interest rates, we studied how interest rates not only effect inflation but also directly relate to the depreciation of currencies.

For instance: When the Federal Reserve lowered interest rates earlier in the year, they inevitably setup the dollar to depreciate. They made the market borrower friendly since they would be able to borrow money at a lower interest rate. However, they harmed the investment portion of the loans. Investors are not getting good enough returns from the interest rates offered, so they are taking their money to other countries. Currently, an investor would profit greatly to convert their currency to dollars, borrow money in the U.S. at a lower interest rate, and invest in a country that is offering more friendly rates. Therefore, we are losing foreign investors (and their capital) to other countries.

The London Eye

Today was our first full sunny day here, so decided to take the trolley and underground over to the London Eye this afternoon. The London Eye is like an over-sized ferris wheel. It was an enjoyable experience, except for the fact that I don't like heights. It cost about £15, but it gave me a lot of good pictures of the town.


The London Eye


Dan, Cody, and I.


Palace of Westminster




Important, but can't remember?


Kind-a don't like heights.


The Gherkin (Egg shaped building)

3rd Day of Class and THE DARK KNIGHT PREMIERE!

Today in class, we began our discussions of the futures market. We talked about the profit that can be obtained when the exchange market allows for an arbitrage situation. We further discussed the American government's choices to bail out Bear Sterns and liberally give money back to tax payers that has not seemed to help the economy. We debated the Fed's latest decisions, and discussed the possible outcomes if the Fed would start buying back the US dollar to decrease the supply in the market while simultaneously increasing the demand. Dr. Michello took it easy on us today because he could see that everybody had a long weekend.


After class, we decided to head downtown to see the premiere of The Dark Knight (new Batman Movie). It was awesome! I was about three feet from Christian Bale, and I about lost it when the Bat-mobile drove up in front of us and reved it's engine! That is an experience I will always remember!


The Red Carpet




Batmobile!


Christian Bale - Batman

**Tried to upload videos of the Batmobile, Michael Caine, and Maggie Gyllenhaal; but I got impatient**

Edinburgh, Scotland: Thursday, July 17 - Saturday, July 19

Thursday afternoon, John and I headed out to Edinburgh, Scotland via the Brit-Rail. It was a 4.5 hour train ride with a lot of great views on the way. We arrived in Edinburgh around 10:00 PM, so we were not able to see much. After we checked into the hotel, we went out and enjoyed some of the local night life. Both of us found a nice Scottish ale called, "Caledonian." It is brewed in Scotland, and unable to be shipped anywhere else because of it's inability to travel. We hung out at a place called "The Rat Pack." It was interesting to say the least! I met two chaps there named "Willie," from Ireland, and "Oliver," from Scotland. I introduced them the delicacies of Grizzly tobacco. They fell in love with it, until it made them sick. They emailed me the next day, and I think they will try to come meet up with our group sometime this month in London. They were some good lads.

Train Station

Bored on the Train

Big John

Lighthouse on the ocean

On Friday, I woke up and decided to hike around the city. I ended up walking up a goat path that led to Edinburgh Castle. My short stubby legs didn't hike too well, but it was worth it. It was a magnificent image from the top. The castle was filled with so many historical artifacts and stories since it has been there since before Christ. It was difficult for me to comprehend a country having that much history. I got to see the royal artifacts, but was unable to take pictures.

After the castle, I walked down the "Royal Mile." I visited St. Giles' Cathedral, and did my tourist thing in there. It was a magnificent place of worship; I can only imagine how amazing the services are there. Walking through the streets of Scotland, was an experience in itself. The street entertainers are absolutely crazy. I listened to an old fashioned bagpipe player (in a kilt), watched a gypsy act like a crazy woman, and viewed a show by a lad that couldn't have been 15. After a long day, John and I decided to take it easy for the afternoon. We went and ate dinner at "Dirty Dicks" and called it a night. We headed back to London Saturday morning. I wish I would have gotten me a kilt while I was there...

"The Call" - A gift from America to Scotland for their help during WWI

Edinburgh Castle

Edinburgh Castle

View from Castle

View from Castle

View from Castle

I look better in a dress than this guy...

St. Giles' Cathedral

British Museum: Thursday, July 17

This morning we went to the British Museum as a class. It was an amazing experience. We were there for about 2.5 hours and I think I only saw 1/3 of it. It had artifacts from ancient Egypt, Greece, Rome, and others. As a class assignment, we were instructed to view the "currency room." In this room, it went into detail the evolution of money and showed coins that were used in the past.

My classmates

British Museum

Me "pounding-it" with an ancient Egyptian sculpture

Replica of the Parthenon

2nd Day of Class

Today started out way to early for most of our class. We all decided it would be a good idea to go out to a Jazz pub together last night. Staying out until 2:00AM and having class at 9:00Am was not the best decision. We had a good time, though. In England, I have learned that it is rude to talk over a band while they are performing. In America, we yell as loud as we can to try to drown out the band. Ha. We were quickly informed that we were being rude by a chap named "Bridge." Needless to say, his physique was fitting of his name, so we quieted down fairly quickly.

During class today, we covered parts of chapter 2 and 3 from our book. We furthered our discussion concerning the trade deficit that America currently has, and what impact that is having on foreign investors. We learned about the impact foreign investors have on the U.S. dollar. We debated the pro's and con's of the government interfering with the market by "bailing-out" companies such as bear-sterns with tax-payers money. (Will this allow banks be more reckless with their decisions knowing that their investment will inevitably be backed by the government?)

Since Dr. Michello wouldn't allow us to sleep in class, we all took naps afterwards. After we were refreshed, Jessica and I went to the Imperial War Museum. It covered topics of war dating back to WWI to the present day. I took as many pictures as I could, but we were in the Holocaust Exhibit most of the time while we were there (no cameras or cell phones allowed). It covered three of the five floors of the museum, and was very detailed with regards to all of the terrible things the Nazi regime did to them.

Well, THIS WEEKEND I will be traveling Edinburgh, Scotland. I will be traveling with one of my classmates named John ("Big John") from Western Kentucky. We booked a hotel for two nights at £70/night, and we got passes that will cover public transportation and admittance into most of the castles and museums. We will be staying right in the downtown area, however, I don't think that I will have internet service there. I will be sure to post again when I get back Saturday night/Sunday morning.

Entrance to Imperial War Museum

Entrance to the museum

Me and Utley about to go into the Holocaust Exhibit

Sherman Tank

Atom bomb "Little Boy" - similar to what the US dropped at Hiroshima

First day of Class

I started my first graduate class today. It is International Financial Management, and it will count for my international business elective for my MBA. My instructor is Dr. Frank Michello (see picture below). I previously had him for Managerial Finance during my last semester of my undergrad at MT. Class was very entertaining and educational as usual. His intention is to engage the class in discussion on various topics.

Today, we briefly reviewed chapter one of our reading, which spoke mainly about globalization, multicultural corporations, financial management, and the importance of understanding international financial decisions. We spoke about various topics such as the depreciating dollar and the potentially detrimental impact of the U.S. becoming so dependent on importing from China. Dr. Michello makes us think, and does not allow us just to read facts from the book. His teaching style will fit in very well while we are in London.

Our field trips with Dr. Michello are as follows: British Museum - July 17, Bank of England - July 24, Lloyds of London - July 29, and Parliament - July 31. He is still trying to decide if we can go to the London Stock Exchange. The first quote they gave him was £2,000 for a 3-hour tour. Thankfully, he declined that offer.

(Left to right): Me, Dr. Michello, Jessica, Dr. Steve

Tour de London!

Today was an amazing experience! We toured all over London and got to see the unique architecture and learn about the history this city has (see slide show). We left the college at 9:00AM (BST) and ended the tour about 2:00PM (BST). Since we were in a tour bus, we did not get to see as much as we had hoped, but we have a good idea of the places we want to visit. We ate lunch at a place called "The KnightsBridge Cafe." I had a Milano, which contained milano salami, chili sauce (not the same as US), cucumbers, and lettuce.


I found the church that I will be attending while I'm here. It's catholic, so my Cali family will be happy. You may have heard of it: St. Paul's Cathedral (where Princess Diana and Prince Charles were married). It is a beautiful church, and it is not too far from where I am staying. Service starts at 11:00, so I leave here at 9:30 to make sure I get a good seat!



Finally, made it out to a local pub lastnight. It will probably be the one we frequent most often since it is only a few blocks from us. It is called The Lion, and it was filled with a bunch of locals that enjoyed talking to Americans. The tab was not too bad. After a few pints and a roast beef and pudding wrap with "chips," my tab came out to be £16.55. That was not too bad for dinner. We also found a couple of Subways and McDonalds, so when the money gets tight we know where to go. While we are here, the college provides us with breakfast from 7:00AM - 9:30AM, lunch when our classes meet (Monday and Wednesday), and dinner Monday - Thursday. I'll eat here often because it is provided, but I will be sure to continue to tour around and taste the local food.

Day 1 - Enough traveling for one day

Well, today was filled with a lot of sitting to say the least. I got to Nashville airport at about 8:00AM (CST), landed in Detroit at 12:00PM (EST), then flew over Canada (almost over Greenland) to London where we landed at about 7:00AM (BST). I experience my very first customs line, and I don't recommend doing that often. Ha. When I first walked up, I took a picture to show what we had to wait through. If you look at the picture closely, you'll see a sign that says no flash photography or video cameras. Oops! 5 minutes in the country and breaking laws.

The parts of London that we road through today were not too impressive, so I didn't take any pictures. We got to our rooms about 9:00Am (BST) and dropped our stuff off. Ha. My room closely resembles a jail cell. I have a sink, a bed, a desk, and a cubbard for my clothes. We are in co-ed dorms, so walking to the shower should be interesting. I'll have to alter how I go to the shower from the way I was accustomed to in the Sigma Nu House. Ha!

After we dropped off our things, we went on a brief tour where I stopped to buy a fan because they don't use air conditioning in our dorms. We had a reception at 6:00PM (BST) where we met with our professors and classmates. I have classmates from Alabama, MT, and Kentucky. We are going to downtown London tomorrow at 8:15AM (BST) and going on a tour around town. I should have more pictures after that. Classes start on Monday, so I better get off here and read.

I love and miss everybody very much.


Me, Jess, and Brit in the Nashville Airport


All of my candy from Cassie (a fat kids dream)!!


Double decker Airplane!

Inside of the airplane (watched 3 movies!)


Customs (the red sign says NO PHOTOGRAPHY)


The jail cell